In Essman v. Gen. Accident Ins. Co. of Am., 961 S.W.2d 572, 574 (Tex. App.--San Antonio 1997, no pet.), Essman was sued for damages arising out of a car accident.
Essman settled with the plaintiffs and "entered into an agreed order of dismissal stating that the parties had settled and compromised all existing controversies between them." Id. at 573.
Essman then filed a claim with her insurance company seeking to receive the uninsured or under-insured benefits available in her policy. Id.
Her insurance company denied the claim, asserting that it was not contractually obligated to pay the benefits to Essman because she could not prove that she was legally entitled to recover damages from the plaintiffs. Id.
Essman sued her insurance company for breach of contract, among other causes of action. Id.
The San Antonio Court of Appeals held that the settlement and dismissal of the plaintiff's claims against Essman precluded her from establishing that she was legally entitled to recover the uninsured or under-insured benefits under her own policy and that the trial court properly rendered partial summary judgment in favor of the insurance company on Essman's breach of contract claim. Id. at 574.